0% Balance Transfer Credit Card Tips
Author: investor2005
Posted: Mon Nov 07, 2005 10:54 am
Post subject: 0% Balance Transfer question
I have a 0% Balance Transfer offer from Citi Dividend Platinum Cash back card. I had primarily got the card to get the cash back on purchases. Now however I would like to take the 0% BT offer.
My question is if I do take the 0% BT offer, then should I stop using this card for purchases (and not get any cash back) ? Is it true that the entire BT needs to be paid off before any payment is directed to purchases ?
Please pardon my ignorance since this is the first time I am considering doing a BT. Have thrown away these offers in the past but now I realize it's free money!!
Thanks for your help.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: maddybeagle
Posted: Mon Nov 07, 2005 11:45 am
Post subject:
most bt offers dont include purchases and I usually just assume it and sock draw it. you should check the offer, though. I think they make it pretty clear in the disclosures. Some people complain that they dont.
Author: hesiden
Posted: Mon Nov 07, 2005 11:59 am
Post subject: 0% Balance Transfer Credit Card
The credit card issuer applies your payments to the LOWEST APR's first. So if you have a $5000 BT at 0% for 12 months and then you buy (or still had some purchases not yet paid off) on the card and your purchase rate was 10%. Then you'd be stuck paying intrest on the purchases until the entire $5000 in BT was paid off.
I believe many people don't realize this and start using the card after a BT, especially with a good reward card since you want to use it to rack up rewards.
Author: mouse
Posted: Mon Nov 07, 2005 12:08 pm
Post subject: Re: 0% Balance Transfer question
investor2005 wrote:
I have a 0% Balance Transfer offer from Citi Dividend Platinum Cash back card. I had primarily got the card to get the cash back on purchases. Now however I would like to take the 0% BT offer.
My question is if I do take the 0% BT offer, then should I stop using this card for purchases (and not get any cash back) ? Is it true that the entire BT needs to be paid off before any payment is directed to purchases ?
Please pardon my ignorance since this is the first time I am considering doing a BT. Have thrown away these offers in the past but now I realize it's free money!!
Thanks for your help.
ALWAYS have a back-up or two or more
The payments will go to the 0.00% BT and nothing to the PURCHASES till the BT is paid off
That is the way it works (MOST OF THE TIME)
On rare occasion the 0.00% is for both BT and PURCHASES BUT you better pay it all the way off before it expires!!!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Mon Nov 07, 2005 10:54 am
Post subject: 0% Balance Transfer question
I have a 0% Balance Transfer offer from Citi Dividend Platinum Cash back card. I had primarily got the card to get the cash back on purchases. Now however I would like to take the 0% BT offer.
My question is if I do take the 0% BT offer, then should I stop using this card for purchases (and not get any cash back) ? Is it true that the entire BT needs to be paid off before any payment is directed to purchases ?
Please pardon my ignorance since this is the first time I am considering doing a BT. Have thrown away these offers in the past but now I realize it's free money!!
Thanks for your help.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: maddybeagle
Posted: Mon Nov 07, 2005 11:45 am
Post subject:
most bt offers dont include purchases and I usually just assume it and sock draw it. you should check the offer, though. I think they make it pretty clear in the disclosures. Some people complain that they dont.
Author: hesiden
Posted: Mon Nov 07, 2005 11:59 am
Post subject: 0% Balance Transfer Credit Card
The credit card issuer applies your payments to the LOWEST APR's first. So if you have a $5000 BT at 0% for 12 months and then you buy (or still had some purchases not yet paid off) on the card and your purchase rate was 10%. Then you'd be stuck paying intrest on the purchases until the entire $5000 in BT was paid off.
I believe many people don't realize this and start using the card after a BT, especially with a good reward card since you want to use it to rack up rewards.
Author: mouse
Posted: Mon Nov 07, 2005 12:08 pm
Post subject: Re: 0% Balance Transfer question
investor2005 wrote:
I have a 0% Balance Transfer offer from Citi Dividend Platinum Cash back card. I had primarily got the card to get the cash back on purchases. Now however I would like to take the 0% BT offer.
My question is if I do take the 0% BT offer, then should I stop using this card for purchases (and not get any cash back) ? Is it true that the entire BT needs to be paid off before any payment is directed to purchases ?
Please pardon my ignorance since this is the first time I am considering doing a BT. Have thrown away these offers in the past but now I realize it's free money!!
Thanks for your help.
ALWAYS have a back-up or two or more
The payments will go to the 0.00% BT and nothing to the PURCHASES till the BT is paid off
That is the way it works (MOST OF THE TIME)
On rare occasion the 0.00% is for both BT and PURCHASES BUT you better pay it all the way off before it expires!!!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 2:27 PM
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